[Federal Register Volume 75, Number 181 (Monday, September 20, 2010)]
[Notices]
[Pages 57304-57305]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-23371]


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POSTAL REGULATORY COMMISSION

[Docket No. RM2010-12; Order No. 534]


Periodic Reporting Proposals

AGENCY:  Postal Regulatory Commission.

ACTION:  Notice

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SUMMARY:  The Postal Service has requested changes in six analytical 
methods approved for use in periodic reporting. This document 
summarizes the proposals and invites public comment.

DATES:  Comments are due October 8, 2010.

FOR FURTHER INFORMATION CONTACT:  Stephen L. Sharfman, General Counsel, 
[email protected] or 202-789-6820.

SUPPLEMENTARY INFORMATION: On September 8, 2010, the Postal Service 
filed a petition pursuant to 39 CFR 3050.11 to initiate an informal 
rulemaking proceeding to consider changes in the analytical methods 
approved for use in periodic reporting.\1\ Six separate proposals are 
included in the Petition labeled as Proposals Three through Eight.
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    \1\ Petition of the United States Postal Service Requesting 
Initiation of a Proceeding to Consider Proposed Changes in Analytic 
Principles (Proposals Three--Eight), September 8, 2010 (Petition).
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    Proposal Three involves City Carrier costs. The Postal Service 
asserts that the City Carrier Cost System is capturing more detailed 
information regarding direct bundles. The proposal would incorporate 
this new information by assigning relevant costs for direct bundles to 
the products that utilize them.
    Proposal Four would change the way certain In-Office Cost System 
(IOCS) acceptance costs are allocated. The change would apply to 
mailpieces accepted at a window, which bear non-retail indicia, and 
host an extra service other than Registered Mail.\2\ Currently, 
acceptance costs are assigned to the extra service. The Postal Service 
proposes to modify this methodology by assigning acceptance costs to 
the host mailpiece.
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    \2\ The extra services include Certified, Insured, Return 
Receipt, Delivery Confirmation, and COD.
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    Proposal Five involves utilizing the more detailed information now 
being captured by the Rural Carrier Cost System regarding collected 
prepaid

[[Page 57305]]

parcels. The new information allows the recognition of a distinction 
between collected prepaid parcels weighing less than or equal to 2 
pounds, and those greater than 2 pounds.
    Proposal Six involves the International Cost and Revenue Analysis 
(ICRA). The Postal Service considers this proposal a change in 
calculation procedure, not an analytical methodology change. The change 
would separately incorporate the Inbound Processing and Carrier In-
Office costs for Canada, Developing Countries and Industrialized 
Countries into the ICRA model using IOCS. The Postal Service asserts 
that this incorporates the Commission's methodology for using IOCS 
tally analysis into the ICRA model.
    Proposal Seven would introduce a mailflow-based model of mail 
processing costs for Standard Mail Parcels and NFMs (Not-Flat 
Machinables). The Postal Service previously did not have a cost model 
for mail processing for this product.
    Proposal Eight involves the distribution key for distributing empty 
equipment transportation costs to products. These costs are included in 
cost segment 14 (purchased transportation). The proposal is to 
attribute the empty equipment costs to products using a distribution 
factor that is based on the aggregate pound miles traveled on modes of 
transportation sampled by the Transportation Cost System (TRACS).
    The attachments to the Postal Service's Petition explain each 
proposal in more detail, including its objective, background, impact, 
and an empirical example (comparing the changes in data reporting to 
the status quo). The Petition, including the attachments, is available 
for review on the Commission's Web site, http:[sol][sol]www.prc.gov.
    Comments on Proposals Three through Eight are due no later than 
October 8, 2010.
    Pursuant to 39 U.S.C. 505, Cassie D'Souza is appointed as Public 
Representative to represent the interests of the general public 
concerning Proposals Three through Six and Eight; and John P. 
Klingenberg is appointed as Public Representative to represent the 
interests of the general public concerning Proposal Seven.
    It is ordered:
    1. The Petition of the United States Postal Service Requesting 
Initiation of a Proceeding to Consider Proposed Changes in Analytic 
Principles (Proposals Three--Eight), filed September 8, 2010, is 
granted.
    2. The Commission establishes Docket No. RM2010-12 to consider the 
matters raised by the Postal Service's Petition.
    3. Interested persons may submit comments on Proposals Three 
through Eight no later than October 8, 2010.
    4. The Commission will determine the need for reply comments after 
review of the initial comments.
    5. As noted in the body of this order, Cassie D'Souza and John P. 
Klingenberg are appointed to serve as the Public Representative to 
represent the interests of the general public in this proceeding.
    6. The Secretary shall arrange for publication of this notice in 
the Federal Register.

    By the Commission.
Shoshana M. Grove,
Secretary.
[FR Doc. 2010-23371 Filed 9-17-10; 8:45 am]
BILLING CODE 7710-FW-S